In a new Atlantic Council piece, BWC Member Hung Tran writes that the G20’s new illustrative template for sovereign debt restructuring improves procedural clarity but at the cost of flexibility. Tran cautions that the template’s rigid, sequential process; its requirement that debtor countries unilaterally offer private creditors take-it-or-leave-it terms; and a punitive claw-back clause could deepen debt crises rather than resolve them. He also flags a missed opportunity to incorporate Global Sovereign Debt Roundtable proposals that would meaningfully strengthen the framework.

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All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.